Debenhams Group exploring £175m debt refinancing deal
Back in March Boohoo announced that it was rebranding under the Debenhams name as recently appointed CEO Dan Finley was aiming to shift the entire business to a marketplace model
Debenhams Group, formerly known as Boohoo, is in discussions to refinance up to £175m worth of debt, according to reports from The Telegraph.
The online fashion company is reportedly looking to access the high yield market for £50m of the proposed total.
Debenhams Group has also sounded out several asset-backed lenders, which take security over property, stock and intellectual property in case of insolvency.
It is believed that the remaining £125m will come from refinancing an existing two-year loan taken out in October.
A Debenhams Group spokesperson said: “Having become Debenhams Group, we are currently at the early stages of evaluating our financing arrangements. In December we paid back £97m of debt and we are now considering the refinancing of our £125m revolving credit facility, well ahead of its term ending in October 2026.
“Debenhams is back and under a new management team it is right for us to assess the ideal financing structure to underpin our ambitious growth plans.”
Back in March Boohoo announced that it was rebranding under the Debenhams name as recently appointed CEO Dan Finley was aiming to shift the entire business to a marketplace model.
At the time the company revealed that Debenham’s turnaround provided it with the blueprint for a revival of the wider group thanks to its technology and lean operating model.
Debenhams includes the labels Wallis, Burton, Misspap, Coast, Oasis, Dorothy Perkins and Warehouse, which Boohoo maintains have been turned around.
Retail Sector has approached Debenhams Group for comment.
